However in a falling market if the lender resorts to selling the shares the excess supply will further push down the stock price exacerbating the investors loss. Shares are considered as assets and hence can be pledged to raise loans. Share Pledge In Joint Stock Corporations In Loan Transactions Kavlak Law Firm For this the central bank has amended the directive issued for Class A B and C banks and financial institutions. Share pledge loan . A share pledge loan is a loan provided by the credit union secured by money in a share account. A pledged asset is collateral held by a lender in return for lending funds. A share secured loan is secured by your savings account share certificate account or money market account. When you initiate a Share Pledged Loan funds equal to the loan balance are frozen in your share or certificate accounts. They take loan either to satisfy their personal needs or for funding the companys business. Implications of share pledge on stock price As lo...